Cover -- Introduction to Project Finance -- Contents -- Preface -- 1 Overview of project finance -- Introduction to project finance -- Uses for project finance -- Why use project financing -- Non-recourse/limited recourse -- Advantages of project finance -- Disadvantages of project finance -- Common misconceptions about project finance -- Description of a typical project finance transaction -- Project phases -- Parties to a project financing -- Project company -- Sponsor -- Borrower -- Financial adviser -- The lenders -- Technical adviser -- Lawyers -- Equity investors -- Construction company -- Regulatory agencies -- Export credit agencies -- United States Export-Import Bank -- Ministry of Economy Trade and Industry (Japan) -- Export-Import Bank of Japan -- Export Credits Guarantee Department -- Compagnie Française d'Assurances Commerciale Exterieure -- Export Development Corporation of Canada -- Other OCED government insurance entities -- Commercial insurance -- Multilateral agencies/development banks -- European Bank for Reconstruction and Development (EBRD) -- World Bank -- International Finance Corporation -- Multilateral Investment Guarantee Agency -- Regional development banks -- Host governments -- Construction contractors -- Suppliers -- Purchasers -- Leasing companies -- Insurers -- Financing sources used in project financing -- Equity -- Developmental loan -- Subordinated loans -- Senior debt -- Unsecured loans -- Secured loans -- Syndicated loans -- World Bank group financing sources -- Export credit agencies -- Bonds -- Advantages of bonds -- Disadvantages of bonds -- Investment funds -- Institutional lenders -- Leasing companies -- Vendor financing of equipment -- Contractors -- Sponsors -- Supplier financing -- Host government -- 2 Understanding key project risks -- Entity risks -- Sponsor -- Construction lender -- Permanent lender.

Contractor -- Operator -- Supplier -- Off-taker/purchaser -- Host government -- Other governments -- Equity investor -- Multilateral and bilateral agencies -- Transaction risks -- Preliminary risk assessment -- Feasibility studies -- Due diligence -- Risk periods -- Engineering and construction phase risks -- Start-up risks -- Operational risks -- Financial risks -- Country/political risks -- Legal risks -- Environmental, regulatory and approval risks -- Refinancing risk -- Force majeure -- Lender liability risk -- Mitigating and managing project risks -- Construction and completion risks -- Operational risks -- Financial risks -- Political risks -- The joint venture -- Guarantees -- Security -- Reasons for taking security -- Security over specific tangible assets -- Negative pledge -- Security trusts -- Formalities -- Insurance issues -- Role of project insurance -- Types of insurance -- Scope of cover -- Problem areas -- Performance and payment bonds -- Reinsurance -- 3 Evaluating the project -- The offering memorandum -- Legislation relating to information memoranda -- Information memorandum issues -- Cash flow -- Financial ratios -- Liquidity ratios -- Debt ratios -- Coverage ratios -- Sensitivity analysis -- Housing development cash flow sensitivity analysis -- Credit risk appraisal: general considerations -- Pre-construction -- Post-construction -- Financial strength -- 4 Contractual framework -- General -- Pre-development agreements -- Construction agreements -- Contractors bonds -- Operating and maintenance agreements -- Sponsor support agreements -- Management agreements -- Representations and warranties -- Project loan/credit agreements -- Credit agreements - basic terms -- Significant provisions of the project finance credit agreement -- Covenants -- The games borrowers play -- Functions of loan covenants -- Drawbacks to loan covenants.

Guidelines for efficient covenanting -- Types of covenants -- Events of default -- Project financing covenants -- NPVs and cover ratios -- Control accounts -- Events of default -- Conditions precedent to closing -- Intercreditor agreement -- Security agreements -- Lenders' security concerns -- Security documents -- Security on specific tangible assets -- 5 Project financing in the economy -- Project financing and the privatization agenda -- Project finance tables -- The UK PFI model -- Appendices -- Appendix 1: Generally accepted risk principles risk map -- Appendix 2: Credit rating agency rating scales -- Appendix 3: Country risk criteria -- Political risk profile -- Economic risk profile -- S&P's sovereign rating profile -- Appendix 4: World Bank country categories -- Glossary -- A -- B -- C -- D -- E -- F -- G -- H -- I -- J -- L -- M -- N -- O -- P -- R -- S -- T -- U -- W -- Y -- Z -- Suggested reading -- Publications -- Books -- Index -- A -- B -- C -- D -- E -- F -- G -- H -- I -- J -- K -- L -- M -- N -- O -- P -- Q -- R -- S -- T -- U -- V -- W.